The thought of filing for bankruptcy can be overwhelming for some after they have realized they are struggling to handle debt. It can also be confusing as there are a lot of misconceptions about all types of bankruptcy, including Chapter 13 bankruptcy. In Florida, anyone thinking about filing bankruptcy may want to be clear about the facts and learn the benefits and potential downside of filing of filing Chapter 13 bankruptcy in particular.
One misconception that is important to be clear about is what kind of debt bankruptcy will discharge and how debt is handled in general. Some people mistakenly believe that filing for Chapter 13 bankruptcy will mean a discharge of debt. It actually means that the financial obligations are reorganized pursuant to a plan and paid off over a set period of time. That period of time may be three to five years.
One benefit of Chapter 13 bankruptcy pertains to credit cards. Many people wrongfully believe that they can never get credit cards again. While credit card misuse may be source of financial instability, if someone files for bankruptcy, they may be able to get credit within a year. Also, once payments are set up, you can generally keep the property you are paying on.
Having a solid knowledge of the different types of bankruptcy and how it will impact your financial future is essential. An experienced Chapter 13 bankruptcy attorney in Florida can help outline the pros and cons of each type of bankruptcy. This may be useful as you plan to handle debt and make strides toward a more stable financial future.
Source: bankruptcy.findlaw.com, “Pros and Cons of Declaring Bankruptcy under Chapter 13“, , Sept. 3, 2014